EUR/USD: Upbeat China PMI fails to buoy Euro

• EUR/USD trades in the red despite an above-forecast China data. 
• US stock futures drop, bond yields rise, keeping the US dollar better bid. 
• On the data front, the focus is on Germany's labor market data 

EUR/USD is trading on a weak note on Wednesday, falling even against an upbeat China data. 

At press time, the currency pair is trading at 1.1223, representing a 0.10% decline on the day. The shared currency faced rejection at a high of 1.1240 during the Asian trading hours. 

China's Caixin Purchasing Managers’ Index (PMI) for the manufacturing sector rose to 51.2 in June from 50.7 in May. The pace of expansion, as represented by the above-50 reading, was the quickest in six months. 

Even so, the futures tied to the S&P 500 are flashing red, keeping the anti-risk currencies like the Japanese yen better bid and EUR and commodity dollars under pressure. The failure to cheer the bullish China data could be associated with the continued rise in the coronavirus cases in the US. 

In addition, the uptick in Treasury yields could be drawing bid for the US dollar. At press time, the 10-year Treasury yield is trading at 0.68%, representing a three basis point on the day. 

The tide, however, may change in favor fo the EUR bulls, if the German Retail Sales (May) and the Unemployment Change (June) data scheduled for release during the European trading hours beat estimates. Across the pond, the focus would be on the US ISM Manufacturing (June), ADP Employment (June), and the FOMC Minutes. 

Technical levels